| Mention the H-1B visa program to a group of | | | | granted. |
| American programmers or engineers and you may | | | | Additionally, when critics allege that H-1B holders are |
| hear a cry of outrage. H-1B visa holders, it is | | | | grossly underpaid, these complaints are typically |
| commonly said, are responsible for taking jobs away | | | | based on either anecdotal evidence or the prevailing |
| from hardworking American high-tech workers. In | | | | wage declarations that were filed for those H-1B |
| addition, disgruntled American techies often complain | | | | applications. Anecdotal evidence only pertains to |
| that H-1B workers are paid much less than their | | | | individual cases though, and says nothing about H-1B |
| American counterparts. They claim that companies | | | | cases on the whole. As for prevailing wage |
| typically use H-1Bs as cheap labor, and that this | | | | declarations, these figures only indicate the minimum |
| results in lowered wages for Americans and | | | | wages that employers are allowed to pay; they don't |
| foreigners alike. In response, defenders of the H-1B | | | | indicate the salary levels that are actually paid. |
| program argue that these foreign workers help the | | | | Not surprisingly, US Citizen and Immigration Services |
| economy grow and that there are adequate | | | | (USCIS) does not make the H-1B wage levels publicly |
| safeguards to ensure that they earn comparable | | | | available, thus making it impossible to compare actual |
| wages. | | | | salaries. However, the National Foundation for |
| The truth, I believe, lies somewhere in between. | | | | American Policy asked a prominent law firm to select |
| The question of whether H-1B holders take jobs | | | | 100 randomly selected H-1B cases from among its |
| away from Americans is entirely legitimate, albeit one | | | | client files. These files contained both the prevailing |
| that is seldom addressed thoroughly by either side of | | | | wage level and the actual salary levels as reported to |
| this debate. For now though, I'd like to focus on the | | | | the USCIS. The result? On the average, the average |
| second of these issues, namely, "Are H-1B workers | | | | wage was more than 22% higher than the prevailing |
| getting paid much less, and thus, depressing the | | | | wage. Furthermore, this figure does not consider |
| competitive salaries for US workers?" | | | | possible wage increases after the applicant has been |
| First, I think it's fair to say that some H-1Bs are being | | | | hired. While we cannot conclude that these cases are |
| paid significantly less than their American | | | | representative of H-1B salary levels in general, this |
| counterparts. By law, companies are required to pay | | | | informal study does illustrate the problem with |
| their H-1B employees in accordance with the | | | | drawing hasty conclusions based solely on the |
| "prevailing wage" for that job; however, determining | | | | prevailing wage declarations. |
| the prevailing wage can be highly subjective and rife | | | | In fact, hiring H-1B applicants can be decidedly more |
| with loopholes. For example, a company can give its | | | | expensive than hiring a native-born worker. When |
| H-1B applicants a job title that does not accurately | | | | hiring a US citizen, the costs generally stop with the |
| reflect his job duties. In addition, prevailing wage | | | | job offer; not so with H-1B visa applicants. Hiring on |
| determinations (by necessity) rely on a fairly coarse | | | | an H-1B basis typically requires nearly $6000 in |
| means of classifying an applicant's job level and | | | | additional legal and government fees - and that |
| classification, which gives companies some leeway in | | | | doesn't even include the cost of the extra work |
| deciding how to file their job descriptions. | | | | required from in-house human resource personnel. If |
| Furthermore, stories abound within high-tech | | | | the employee seeks green card sponsorship, this can |
| industries of companies that hire foreign laborers | | | | require an additional $10,000-maybe more. On top of |
| from so-called "job shops" - consulting firms that | | | | that, sponsoring for an H-1B visa or a green card can |
| specialize in supplying low-paid H-1B workers, typically | | | | be a risky proposition with no guarantee of success. |
| from India. Accurate figures can be difficult to find, | | | | Perhaps some companies do sponsor H-1B holders in |
| as these reports typically come from either anecdotal | | | | order to save money, but if so, these savings are |
| sources or a government audit that was performed | | | | greatly offset by the additional expenses and legal |
| in 1996; however, these stories cannot be easily | | | | headaches involved. |
| discounted either. I myself once worked with two | | | | What's more, other figures contradict the claim that |
| programmers (one from India, one from Pakistan) | | | | foreigner high-tech workers earn much less than |
| who had been recruited by such an outfit, where | | | | Americans do. Similarly, a study by Center for Labor |
| they had been paid embarrassingly low wages. | | | | Market Studies at Northeastern University reports |
| Nevertheless, while such abuses do occur, I think that | | | | that foreign-born and native professionals in math and |
| the extent of this problem has been tremendously | | | | the sciences earn virtually identical salaries. The same |
| exaggerated. Various studies indicate that H-1Bs are | | | | study showed that in computer science and |
| paid much less than American workers are; however, | | | | mathematics, salaries were roughly the same for |
| these studies are typically conducted by special | | | | master's degree holders, and were actually higher for |
| interest groups that oppose the H-1B program. No | | | | the bachelor's degree and doctorate holders. Salary |
| definitive governmental research has yet proven | | | | levels were comparable for at all three levels within |
| these statistics to be true. | | | | the life sciences. Native-born American engineers with |
| In addition, I would argue that such studies are based | | | | bachelor's or master's degrees admittedly earned |
| on questionable statistics and methodologies. Most | | | | more than than their foreign-born counterparts; |
| notably, they fail to consider that your typical H-1B | | | | however, the situation was reversed when it came |
| visa holder will be a recent college graduate, and thus, | | | | to doctorate holders. |
| relatively young. It should thus be no surprise that | | | | So in summary, is it true that H-1B visa holders are |
| they will earn less than many Americans who work in | | | | paid much less than US workers? That is sometimes |
| the same field. In fact, the National Science | | | | true. On the whole though, I think that this alarmist |
| Foundation (NSF) reports that foreign-born | | | | claim is greatly overblown, and we have good reason |
| professionals actually earn more than their American | | | | to believe that they are generally paid well. For this |
| counterparts when one compares individuals with | | | | reason, I think we should not be quick to conclude |
| equivalent ages and degree levels, and when one | | | | that this influx of H-1B workers is dragging salary |
| considers the year in which these degrees were | | | | levels down. |